Ann: RIGHTS ISSUE OVERSUBSCRIBED, page-175

Good on you Darren for asking the option question and Matt for clarifying... What can you do with an option? You can:

A) Decide to convert it (exercise your right) to a fully paid ordinary share (fpo), by paying the company the contracted (strike) price at any time before the expiry date. Once this transaction occurs, your option becomes a fully paid ordinary share, is added to the company share register and ranks equally with all others...

I've never been bothered with options but yesterday I decided to wrap my head around the option converting thing.

So why now? All things being equal and well, these options will provide approx $20mill (thanks again Matt) for the next 3 years of our SHs self-funded drill campaign across 4 potential Tier 1 projects owned 100% by us AND, more personally, if I buy more options today (roughly the same amount to my normal shares) I can be cost neutral and won't have to discuss the need for more money with my wife (she's over it!) to convert options into shares each year for the next 3 years... AND grow my Inca portfolio.

For what it's worth, here's a cost neutral example. God, I hope this is right....

Let's say you had a total of 600000 shares and 300000 options (3 x 100000 Options in A, B & C that are free because you participated in CRs).

If you buy double that amount of Options in ABC today for say .01c it will cost you a total of $3000 (3 x $1000)... this now gives you 600000 shares and 600000 options (3 x 200000).

Now, hoping for the best, let's assume we hit a discovery hole each year for the next 3 years across each of our projects and the share price (SP) doubles the option price (OP A, B or C)... you can then sell shares to buy/convert cheaper options AND increase your total share holding at the same time:

2020 total holding 600000 shares
2021 SP 0.18 OPB 0.09... sell 100000 shares for $18000 to buy/convert 200000 options, total holding 700000
2022 SP 0.28 OPA 0.14*... sell 100000 shares for $28000 to buy/convert 200000 options, total holding 800000
2023 SP 0.40 OPC 0.20... sell 100000 shares for $40000 to buy/convert 200000 options, total holding 900000
(Note*.007x20 =0.14 with conversion 20:1)

Therefore, from my perspective, buying $3k of options today means I can be cost neutral and grow my portfolio by 50% over the next 3 years AND it also means I won't have to have any more awkward money convo's with my wife going forward... happy wife, happy life!

Hope this is useful. All the best with your decisions everyone!

Poet

PS Having said all that, if you don't want your options... please sell them as I'm still in the queue!